Analysis of the unemployment rate and foreign investment index export mechanisms for the supply chain in the Central American textile sector (#835)

Authors

Dore, Edwin

Ordoñez-Avila, Jose Luis

Abstract

The Central American textile sector plays a key role in the regional economy, particularly in terms of job creation and integration into global value chains. However, its competitiveness is conditioned by structural factors such as unemployment and foreign direct investment (FDI). This study aims to analyze how these variables influence the sector's export mechanisms. A mixed approach was used with data from five countries (Costa Rica, Guatemala, Honduras, El Salvador, and Nicaragua), applying descriptive and correlational analyses and nonparametric statistical tests to economic indicators between 1995 and 2023. The data reveal notable regional differences: Costa Rica stands out for its high FDI inflows, but with possible negative effects on the export and labor performance of neighboring countries, while Honduras and Guatemala show synchronized growth patterns. It is concluded that FDI only contributes significantly to export competitiveness when it is articulated with solid institutions, coordinated public policies, and human capital formation. The article proposes strategic guidelines for sustainable regional integration, emphasizing the need for development models based on innovation, equity, and the circular economy.